Webinar: 2013 Profile of Home Buyers and Sellers
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Transcript of Webinar: 2013 Profile of Home Buyers and Sellers
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8/13/2019 Webinar: 2013 Profile of Home Buyers and Sellers
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Jessica Lautz
November 20, 2013
Webinar:2013 Profile of Home
Buyers and Sellers
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Methodology
Survey conducted with recent home buyers who purchaseda home between July 2012June 2013
Seller information gathered from those home buyers whosold a home
Mailed 148,011 questionnaires- response rate of 6.1%
Names obtained from Experian
Data in the presentation is based on medians or the typicalbuyer in the category and is not all encompassing
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Demographic Changes Since 2010
2010 Profile 2011 Profile 2012 Profile 2013 Profile
Median Age 39 45 42 42
Gross HHIncome
$72,200 $80,900 $78,600 $83,300
HouseholdComposition
58% marriedcouples,20% singlefemales, 12%single males,8% unmarriedcouples
64% marriedcouples,18% singlefemales,10% single males,7% unmarriedcouples
65% marriedcouples,16% singlefemales,9% single males,8% unmarriedcouples
66% marriedcouples,16% singlefemales,9% single males,7% unmarriedcouples
Children inHome
35% 36% 41% 40%
Own a 2ndHome
14% 19% 19% 19%
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Shift in Household Composition
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First-time Buyer Share Remains Under Historical Norm
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Multi-Generational Households
All
Buyers
Married
couple
Single
female
Single
male
Unmarried
couple OtherMulti-generationalhousehold 14% 13% 14% 10% 10% 49%
Reasons for purchase:
Children over 18 movingback into the house 24% 24% 31% 18% 22% 14%
Cost Savings 24 19 28 36 36 40
Health/Caretaking ofaging parents 20 23 10 10 12 32
To spend more time withaging parents 11 12 10 5 5 *
Other 22 22 22 31 24 14
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First-time Buyers
Type of Home Purchased
Single-family, 77%
Townhouse, 8%
Apt/ condo, 7%
Other, 6%
How Buyer Purchased a Home
Agent, 91%
Builder, 4%
Previous owner, 4%
60
8
7
5
Desire to own
Affordability
Family changes
Establish a household
0 20 40 60 80
Reasons to Purchase Home
Median
Household
Income
$67,400
Median
Age31
Median
Square Feet
1,670
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Repeat Buyers
Type of Home Purchased
Single-family, 82%
Townhouse, 6%
Apt/ condo, 7%
Other, 5%
How Buyer Purchased a Home
Agent, 86%
Builder, 8%
Previous Owner, 5%
16
12
12
9
Larger home
Job relocation
Desire to own
Closer to friends& family
0 10 20
Reasons to Purchase Home
Median
Household
Income
$96,000
Median
Age
52
Median
Square Feet
2,060
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No New Homes to Buy
21%28%
21% 23% 22% 23% 21%18% 15% 16% 16% 16%
79%72%
79% 77% 78% 77% 79%82% 85% 84% 84% 84%
0%
20%
40%
60%
80%
100%
2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
New Previously Owned
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Reason for New or Previously Owned Home
New Home: 16%Avoid renovations or problems with plumbing or electricity 32%
Ability to choose and customize design features 25
Amenities of new home construction communities 14
Lack of inventory of previously owned home 10Green/energy efficiency 6
Other 13
Previously Owned Home: 84%
Better price 30%
Better overall value 28
More charm and character 17
Lack of inventory of new homes 9
Other 16
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Location, Location, Location
Quality of the neighborhood
Convenient to job
Overall affordability of homes
Convenient to friends/family
Quality of school district
Design of neighborhood
Convenient to shopping
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Commuting Costs
VeryImportant, 32%
SomewhatImportant, 41%
Not Important,27%
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Environmentally Friendly Features
36%
21%
22%
10%
9%
2%
49%
47%
45%
36%
35%
8%
15%
32%
33%
55%
56%
90%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Heating and cooling costs
Energy efficient appliances
Energy efficient lighting
Landscaping for energy conservation
Environmentally friendly community features
Solar panels installed on home
Very Important Somewhat Important Not Important
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Compromises on Home Purchase
All
Buyers
First-time
Buyers
Repeat
BuyersPrice of home 20% 22% 19%
Size of home 18 21 16
Condition of home 17 16 17
Distance from job 14 19 11
Lot size 14 16 13
Style of home 13 16 12
Distance from friends or family 6 9 5
Quality of the neighborhood 5 6 4
Quality of the schools 3 6 2Distance from school 2 2 1
None - Made no compromises 33 26 38
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Buyers who Purchased Senior Housing or in an ActiveAdult Community
Type of Home Purchased
Single-family, 58%
Townhouse, 10%
Apt/ condo, 18%
Other, 15%
How Buyer Purchased a Home
Agent, 82%
Builder, 13%
Previous Owner,6%
22
18
15
10
Desire to own
Retirement
Smaller home
Closer to friends& family
0 10 20 30
Reasons to Purchase Home
Median
Household
Income$67,400
MedianAge
64
Median
Square Feet
1,700
First-time
buyers, 26%
Repeat
buyers, 74%
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Expected Tenure Remains High
0
2
4
6
8
10
1214
16
2006 2007 2008 2009 2010 2011 2012 2013
First-time Buyers Repeat Buyers
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Actual Tenure Among Sellers Remains High
6 6 6 6 6 6
7
89 9 9
01
2
3
45
6
7
89
10
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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The Search Process
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Frequency of Use
76
68
29
27
16
13
12
5
7
3
1
1
1
13
21
16
16
35
33
15
18
11
13
3
3
2
11
11
55
58
49
55
73
77
83
85
96
96
97
0% 20% 40% 60% 80% 100%
Online website
Real estate agent
Mobile or tablet website or application
Mobile or tablet search engine
Yard sign
Open house
Online video site
Print newspaper advertisement
Home builder
Home book or magazine
Billboard
Television
Relocation company
Frequently Occasionally Rarely or not at all
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Value of Website Features
83%
79
43
40
39
34
33
31
21
19
6
15%
19
34
36
34
45
44
36
33
33
25
1%
1
11
12
14
12
14
19
23
20
29
1%
1
13
13
13
10
10
15
24
28
40
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Photos
Detailed information about properties for sale
Virtual video tours
Interactive maps
Real estate agent contact information
Neighborhood information
Detailed information about recently sold properties
Pending sales/contract status
Information about upcoming open houses
Videos
Real estate news or articles
Very Useful Somewhat Useful Not Useful Did not use/Not Available
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Importance of Agent Communications
All
Buyers
First-time
Buyers
Repeat
BuyersCalls personally to inform of activities 78% 77% 79%
Sends postings as soon as a property is listed/the pricechanges/under contract 72 72 72
Sends emails about specific needs 61 64 58
Can send market reports on recent listings and sales 54 49 58Sends property info and communicates via text message 49 53 46
Has a web page 33 32 33
Has a mobile site to show properties 23 24 23
Sends an email newsletter 11 11 11
Advertises in newspapers 6 3 8Is active on Facebook 3 4 3
Has a blog 1 1 1
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Buyer and Seller Changes
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Tightened Inventory Affects Home Search and Selling
Buying Side:
Buyers saw 10 homes before buying
Typically look for 12 weeks total and 2 weeks before contacting anagent
52% of buyers reported hardest task is in process was finding the
right home Selling Side:
Typically received 97% of final asking price increase from 95%
Median time on market 5 weeks decrease from 11 weeks
38% sellers home was on market less than 2 weeks-up from 24%
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Agent Use By Buyers & Sellers Remains High
88% of buyers purchased their home through a real estate agent orbroker
Most want help finding right home
Benefited from help understanding the process High importance on honesty and integrity
88% of sellers were assisted by an agent
Help market home
Sell w/in specific timeframe Help price home competitively
Reputation and honesty and integrity important
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Agent Assisted Sales High
19 17 15 18 16 13 14 14 13 12 12 13 11 9 10 9 9
77 82
81
80
77 79 83 82 85 84 85 84 85 88 87 88 88
4 1 4 4 78
4 4 2 3 3 3 4 3 3 2 3
0
10
20
30
40
50
60
70
80
90
100
All FSBO (For-sale-by-owner) Agent-assisted Other
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Reasons Behind Selling as FSBO
Among the 9% of FSBOs
40% knew the buyer
60% did not know the buyer
61% did not need to sell urgently
For FSBO sellers who did not know the buyer
18% were contacted by a buyer they did not know asking to buyhome
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Hot Topics
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Expenses that Delayed Saving for Downpaymentor Saving for Home Purchase
0%
10%
20%
30%
40%
50%
60%
All Buyers First-time Buyer Repeat Buyer
43%
54%
23%
38
36
42
3136
22
1412
18
10 10 8
Student Loans Credit card debt Car loan Child care expenses Health care costs
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Buyer Previously Sold a Distressed Property
Sold distressed property 6%
Year sold distressed property (median) 2009
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Seller Wanted to Sell Earlier, But Waited or StalledBecause Home Was Worth Less Than Mortgage
All
Sellers
1 year or
less
2 to 3
years
4 to 5
years
6 to 7
years
8 to 10
years
11 to 15
years
16 to 20
years
21 years
or moreYes, and lived inhome
12% 8% 3% 11% 19% 20% 11% 7% 7%
Yes, but rented hometo others and livedelsewhere
1 0 2 1 1 1 0 1 1
No, sold home whenI wanted to sell
87 92 95 88 80 79 89 92 92
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Profile of
Home Buyers inSub-regions
November 04, 2013
NAR Research
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Sub-regions Included
New England (New Hampshire, Vermont, Maine, Massachusetts,Rhode Island, Connecticut)
Middle Atlantic (New York, Pennsylvania, New Jersey)
East North Central (Wisconsin, Illinois, Indiana, Ohio, Michigan)
West North Central (North Dakota, South Dakota, Minnesota, Iowa,
Nebraska, Kansas, Missouri)
South Atlantic (Delaware, Maryland, West Virginia, Virginia, Districtof Columbia, North Carolina, South Carolina, Georgia, Florida)
East South Central (Kentucky, Tennessee, Mississippi, Alabama)
West South Central (Oklahoma, Arkansas, Louisiana, Texas) Mountain (Montana, Idaho, Wyoming, Nevada, Utah, Colorado,
Arizona, and New Mexico)
Pacific (Washington, Oregon, California, Alaska)
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New England Household CompositionMarried, 62%
Single female, 16%
Single male, 10%
Unmarried couple, 12%
Median
Household
Income
$88,700
38%
12%
8%
6%
Desire to own
Larger home
Family changes
Affordability
% 10% 20% 30% 40%
Reasons to Purchase Home
Median
Age
38
Type of Home Purchased
Single Family, 78%
Townhouse, 6%
Apt/ condo, 10%
Other, 6%
First-
timebuyers,
45%Repeatbuyers,
56%
Boughtnew
home,9%
Boughtexistinghome,91%
11% bought multi-generational homeReasons:
Cost savings-29% Children over 18 moving back into house-23% Health/caretaking of aging parents-23% Spend more time w/aging parents-7%
H h ld C iti
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Mountain
Type of Home Purchased
Single-family, 86%
Townhouse, 5%
Apt/ condo, 4%
Other, 5%
Household Composition
Married, 72%
Single female, 13%
Single male, 10%
Unmarried couple, 4%
Other, 1%
24%
11%
9%
8%
Desire to own
Larger home
Job relocation
Retirement
0% 10% 20% 30%
Reasons to Purchase Home
Median
Household
Income
$73,900
Median
Age
48
First-time
buyers, 29%
Repeatbuyers, 71%
Boughtnew
home,16%
Bought
existinghome,84%
19% bought multi-generational home
Reasons:
Children over 18 moving back into house-26% Cost savings-24% Health/caretaking of aging parents-17% Spend more time w/aging parents-4%
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Where to find NAR Research
Jessica Lautz:[email protected], 202-383-1155
NAR Researchwww.realtor.org/research-and-statistics
Economists Outlook Blog:economistsoutlook.blogs.realtor.org
FaceBook: facebook.com/narresearchgroup
Twitter: twitter.com/NAR_Research
mailto:[email protected]://www.realtor.org/research-and-statisticshttp://economistsoutlook.blogs.realtor.org/http://www.facebook.com/narresearchgrouphttps://twitter.com/NAR_Researchhttps://twitter.com/NAR_Researchhttps://twitter.com/NAR_Researchhttp://www.facebook.com/narresearchgrouphttp://www.facebook.com/narresearchgrouphttp://economistsoutlook.blogs.realtor.org/http://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticsmailto:[email protected]